For 2015, a manufacturing company created the static budget shows below based on production of 5,000 products. The company expects that production may differ by an increase or decrease of 1,000 products. Prepare a flexible budget for the possible changes in production levels.

Variable cost;

Direct labor $20,000, 

Direct materials 35,000, 

Total variable cost $55,000

Fixed Cost:

Utilities $7,500 

Salaries 9,000, 

Depreciation 3,100, 

Total fixed cost $19,600,

 Total department cost $74,600